lobster
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Post by lobster on Mar 18, 2016 8:33:48 GMT
This may have been discussed before but just recently the SM is hugely more liquid than a couple of weeks ago, not just for AC but seemingly for other P2P's also. Good news I guess but the pessimist in me can't help feeling a bit nervous.  Why so many sellers all of a sudden ? Is it anything to do with the new financial year looming and/or new P2P ISA rules ? Or are folks getting a bit worried about the property market going forward ? So many P2P loans are property oriented that a slump would stress many of these loans significantly, although they are obviously asset backed. |
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bigfoot12
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Post by bigfoot12 on Mar 18, 2016 9:16:39 GMT
Platforms do go through feasts and famine, especially for newer or smaller platforms it is very hard to balance supply and demand. I imagine the current situation is how most platforms would like it, (AC in particular) they have plenty to chose from, but loans clearing reasonably quickly.
I think that generally the Christmas slowdown is over, and most of the medium sized platforms have lots of loans. At the same time this is the tradition time lots of people make contributions to ISA, SIPP, VCT and other investments. With the fall in the stock market (and much else) there has been lots to invest in away from P2P. And as it seems that transferring existing P2P loans into an ISA will be hard at best and in many cases not possible I think that some are holding off on new (P2P) investments until the the new ISA is launched. I moved money away from AC (and another platform) during the famine and I haven't moved it back yet.
I can't see any particular difference in impact between property and non-property.
Perhaps a useful warning that liquidity has a price and don't assume that because you could easily sell anything last week you will be able to when you need to.
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Post by lynnanthony on Mar 18, 2016 11:02:34 GMT
This may have been discussed before but just recently the SM is hugely more liquid than a couple of weeks ago, not just for AC but seemingly for other P2P's also. Good news I guess but the pessimist in me can't help feeling a bit nervous. Why so many sellers all of a sudden ? Is it anything to do with the new financial year looming and/or new P2P ISA rules ? Or are folks getting a bit worried about the property market going forward ? So many P2P loans are property oriented that a slump would stress many of these loans significantly, although they are obviously asset backed. Sorry to be pedantic but I don't think what we are seeing represents a liquid SM. I'm open to correction but I regard a liquid SM as one where buying and selling is going on in such a way that I can sell loans reasonably quickly, and also where there are loans to buy. It looks to me like very little is moving. So there are currently maybe thirty loans where I stand no chance of selling in a reasonable time frame (if I wanted to). That to me is the very opposite of a liquid SM.
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Steerpike
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Post by Steerpike on Mar 18, 2016 11:19:33 GMT
I have been rebalancing in order to invest in new loans and so have been have buying and selling in all three accounts in the last few weeks and not experienced problems apart from with the GEIA which moves very slowly, presumably because there are fewer loans than expected thanks to the actions of Ms Rudd.
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agent69
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Post by agent69 on Mar 18, 2016 19:09:33 GMT
Depends on how you view whats on offer. Most of what's available appears to be either newish loans I wasn't interested in, or older loans that I got out of a while ago because I didn't like the way things were going.
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trouble
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Post by trouble on Mar 18, 2016 19:14:29 GMT
I did a lot of rebalancing last week, sold down around 20 loans within 48 hours, sums upto / just over £1k apiece, all then reinvested into others of my choosing.
Don't forget we are investing in medium term loans generally, so we should be satisfied that if we have to hold for term then so be it, the ability to sell down loans (with discounting now available if desperate for cash) is a Brucie Bonus to me.
I call that a liquid market. I actually get my cash in my hand quicker than a blue chip share sale !!!!
Also remember that AC via the QAA will be holding loan portions, and have the ability to sell down those to aid diversification in the QAA and keep the market fresh for all of us, but inparticular to give any new entrants a nice slug to go at.
Far better now than with zero in the market to buy just a few months ago
Well done AC
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tonyr
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Post by tonyr on Mar 18, 2016 20:04:04 GMT
I think it's mostly ISA driven. I'm sure I'm not alone in not trusting the stock market this year so (unlike every other year) I've kept my full ISA limit (in AC) with the intention to take it out at the last minute - which is what I'm doing now.
It's a shame that AC haven't announced their ISA offering, others have. I have more than 10 years of ISA contributions and would like to put them in P2P. If AC don't launch early next tax year I may well consider another P2P provider.
But they've really ramped the loans up recently and not increased the QAA so I expect an imminent ISA announcement.
I wonder if any other P2P has reverse engineered the QAA and hence the main ISA offering? I suspect not even though it's not too hard. I do hope that AC launches a QAA style ISA - they should do very well out of it.
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oldgrumpy
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Post by oldgrumpy on Mar 21, 2016 20:59:17 GMT
73 loans in the "for sale" list now, a lot of cash wanted. I wonder if any buying is happening, or are you all "stuck-in-the-mud"? Good job I am not wanting to sell just now.
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brin
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Post by brin on Mar 21, 2016 21:15:43 GMT
or are you all "stuck-in-the-mud"? sorry for posting this again, i cant help it, everytime i read "mud" it happens. 
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jonah
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Post by jonah on Mar 21, 2016 21:57:16 GMT
70 (down from 73) to of 130 has to be close to a record. I see some sizeable loans due to payback in the next few days, but right now a great diversification opportunity for some and potential selling concern for others!
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j
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Post by j on Mar 21, 2016 22:06:08 GMT
Wonder if it's UWs trying to release cash to underwrite some of the new loans?
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kermie
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Post by kermie on Mar 21, 2016 22:33:39 GMT
For me, it's end-of-year tax planning (or perhaps, lack of planning!) - to make use of ISA allowance.
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Post by badger on Mar 22, 2016 12:54:13 GMT
Could be in anticipation of the new p2p ISA - as I understand it, we won't be able to just transfer existing loans to the new ISA but will have to sell first, then re-invest the money in the ISA. Is that right? If that's the case, then I expect it to get a lot worse before it gets better after April (or whenever the new ISA becomes available)
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agent69
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Post by agent69 on Mar 28, 2016 15:12:10 GMT
Just had a trawl through the SM, and am surprised (given the amount that is available) that only 2 loans have anything on offer at a discount.
Looks like people are keen to sell, but not desperate.
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SteveT
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Post by SteveT on Mar 28, 2016 15:51:21 GMT
Just had a trawl through the SM, and am surprised (given the amount that is available) that only 2 loans have anything on offer at a discount. Looks like people are keen to sell, but not desperate. I suspect that a lot of the units for sale in more recent loans are being offered by the QAA
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Why so many sellers all of a sudden ? Is it anything to do with the new financial year looming and/or new P2P ISA rules ?
